KC Corporation issued bonds with a total par value of $100,000 on 1/1/20x1. The following loan amortization schedule was developed for these bonds... Year 20x1 20x2 20x3 20x4 Column Totals Beginning Carrying Value 96,613 97,376 98,192 99,065 Interest 6,763 6,816 6,873 6,935 27,387 Cash 6,000 6,000 6,000 6,000 24,000 Amortization 763 816 873 935 3,387 Based upon the above information, Assume the bonds are refunded on January 1, 20x4. The new issue has a market value of 104. Make the required journal entry to record the refunding. (You do not have to record interest expense or interest payable.)
KC Corporation issued bonds with a total par value of $100,000 on 1/1/20x1. The following loan amortization schedule was developed for these bonds... Year 20x1 20x2 20x3 20x4 Column Totals Beginning Carrying Value 96,613 97,376 98,192 99,065 Interest 6,763 6,816 6,873 6,935 27,387 Cash 6,000 6,000 6,000 6,000 24,000 Amortization 763 816 873 935 3,387 Based upon the above information, Assume the bonds are refunded on January 1, 20x4. The new issue has a market value of 104. Make the required journal entry to record the refunding. (You do not have to record interest expense or interest payable.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:KC Corporation issued bonds with a total par value of $100,000 on 1/1/20x1. The following loan
amortization schedule was developed for these bonds:.
Year
20x1
20x2
20x3
20x4
Column Totals
Beginning
Carrying Value
96,613
97,376
98,192
99,065
Interest
6,763
6,816
6,873
6,935
27,387
Cash
6,000
6,000
6,000
6,000
24,000
Amortization
763
816
873
935
3,387
Based upon the above information,
Assume the bonds are refunded on January 1, 20x4. The new issue has a market value of 104.
Make the required journal entry to record the refunding. (You do not have to record interest
expense or interest payable.)
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